3. What’s Hot? Anything Green…… NFL and NCAAF Tea Party Organic gardening Ipad and AppStore Savannah in Sept Electric Cars Packers or Vikings? ScanSource, Inc. Confidential
4. Recession's over, economists say to a skeptical public A declaration that the turning point came in June 2009 gets an indignant reaction, showing that many Americans see little difference between the recession and current conditions. ScanSource, Inc. Confidential
5. IBM Global CEO Study 1500 CEO interviews, 33 industries, 60 countries Face-face interviews and subsequent analysis of 23 questions and 10,000 interview quotes Discussion on impact to business in the New Economic Environment Thanks to IBM for permission to use ScanSource, Inc. Confidential
6. Key Findings CEOs must navigate in a highly volatile, increasingly complex environment Massive global shifts increase uncertainty Continued rise of technology as key external factor Challenges are compounded by regional differences Thanks to IBM for permission to use ScanSource, Inc. Confidential
7. Capitalizing on Complexity Embody creative leadership Reinvent Customer relationships Build operating dexterity Thanks to IBM for permission to use ScanSource, Inc. Confidential
8. Reinvent Customer Relationships Honor your customers above all else Use two –way collaboration to sync with customers Profit from the information explosion Thanks to IBM for permission to use ScanSource, Inc. Confidential
9. Embody Creative Leadership Embrace ambiguity; act despite uncertainty! Take risks that disrupt legacy business models Leapfrog beyond “tried and true” management styles Thanks to IBM for permission to use ScanSource, Inc. Confidential
10. Build operating dexterity Simplify whenever possible Manage systemic complexity Promote a mindset of being fast and flexible Be “glocal” – global where possible, local where necessary Thanks to IBM for permission to use ScanSource, Inc. Confidential
11. What is ScSc doing in North America in 2011? Trying to make doing business with ScSc easier! Investing in new communication tools Testing new ideas and new vendor relationships Talking a lot about the E-word! ScanSource, Inc. Confidential
12. 2010 Highlights Return of Large Deals Record sales in June Quarter Record number of customers Significant increase in Inventory and accounts receivable ScanSource, Inc. Confidential
13. Fiscal Years Ended June 30th A History of Growth and Profitability Net Sales ($ in Millions) ScanSource, Inc. Confidential
17. SOLID CAPITAL STRUCTURE Our Debt to Equity Ratios reflect our financial strength... vs. our Competition… 31.8% Debt to Equity Ratio 12.1% 21.8% $250 million available for borrowing on revolving credit facility as of June 30, 2010. *Data from latest available Quarterly filings with SEC ScanSource, Inc. Confidential
18. 2011 Challenges and Opportunities Vendor Supply Chain management ScanSource will continue to invest to buffer customers and vendors Customer Growth opportunities ScanSource will work harder to expand A/R flexibility and manage spikes in business Partnering and collaboration opportunities SUMO and ScanSource Community AppSource ScanSource, Inc. Confidential
20. First Auto-ID Applications Marketplace Unique Value-added Services Independent Professional Mobile Store Respect channels and indirect approach SCSC Resellers are given equal opportunity to enjoy applications as AppSource is built to be device and platform independent, while content developers reach a wider audience. ScanSource, Inc. Confidential
22. Summary 2011 will be growth opportunity; marketshare is always a Jump Ball ScSc ready to invest in growth opptys E-Word is sacred at ScSc ; channel is the Best Route to Market You must drive your success but we want to help Partnering is Profitable and Smart! ScanSource, Inc. Confidential